But some investors use Schwab as their online broker instead of Vanguard and Fidelity. Why would this be? BrandonBogle Posts: 3401 Joined: Tue Jan 29, 2013 4:19 am. My main thought process for keeping my money where it is is diversification. This fund tracks the CRSP US Total Market Index. As the name suggests, the S&P 500 is composed of the largest 500 publicly traded companies in the U.S. Apples to Oranges. Both VTSAX and SWTSX are mutual funds. The Fund invests by holding a collection of securities that approximates the Index. The ETF structure can help index funds be even more tax efficient. Morningstar’s Tax Analysis shows that Charles Schwab’s SWTSX fund lost 0.75% to taxes over the past 15 years, while Vanguard’s VTSAX fund lost only 0.48%. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. What are some of the pros and cons for each type of investment? This is the opposite of last year. My point is mostly just people should be aware of this when comparing costs. The biggest issue with most robo-advisors is the additional cost. Because I am pretty young, I have been using the highest risk setting on Wealthfront (10.0). However, when you go to buy VTI, you could pay a different price depending on the time of day that you placed your order, even down to the minute. Roboadvisors use math to efficiently combine your assets in a way that minimizes volatility and maximizes return. VTSAX: 3,560: $813.5 B: 0.04%: Schwab: SWTSX: 3,075: $10.0 B: 0.03%: Fidelity: FSKAX: 3,454: $46.5 B: 0.015%: Fidelity: FZROX: 2,530 : $3.8 B: 0%: On the surface, the new Fidelity® ZERO Total Market Index Fund looks like it just won the war as best US total market index fund. Logged Proud Foot. SWTSX will decrease to 0.03% annual ER vs … For a person with a $100k balance at a .25% fee, that comes out to $250/year or a little over $20/month. Fees will be less with VTSAX or VTI, but similar to how 5% in bonds and 5% in dividend growth isn’t going to make your rich, it also won’t tank the portfolio. Its ETF equivalent, the Vanguard Total Stock Market ETF ( VTI ) also has a 0.05% expense ratio and no minimum purchase amount. None of the options are bad, as long as you stay either at 0% International or between 10% and market cap weight. (yes, you might not normally re-balance monthly, but ideally you should be regularly contributing). Not necessarily. SCHB is very similar, as well. Total stock market funds, on the other hand, include both large-cap stocks and the many small- and mid-cap stocks left out of the S&P 500. Like others have said, Robo Advisors are very hands off and provide cheaper services. Post by BrandonBogle » Sun Feb 19, 2017 11:31 pm. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. The Fund invests by holding a collection of securities that approximates the Index. 974. The iShares Russell 3000 ETF (IWV) The iShares Russell 3000 (IWV) is an exchange traded fund that … if you're in the S&P range but paying higher fees, maybe switch to VTSAX. boglechu wrote:I may invest about $100k in my after-tax assets total in the upcoming year. You can honestly remain very hands off with simply 3-4 funds and rebalancing annually. For most investors, the way to gain maximum diversification for minimum cost is to invest in a total stock market index fund. 2) Yes, the Schwab fund, SWTSX has a lower expense ratio of 0.03%. Suggestions for Robos? If there was a conclusive reason one would outperform the other consistently over 40 years, the loser would not exist. The primary difference between VTSAX and VTI is the minimum initial investment and the way shares are bought and sold. Can be bought and sold during market hours . Any benefit for quarterly dividends in vtsax vs annual dividends for swtsx? 10% in bonds and dividend growth isn’t that much, more diverse than having 100% in a total stock market fund. March 13 edited March 13. I’m going to read more about how to rebalance a portfolio and things of that nature before deciding. I’m going to try to change a few of my Wealthfront holdings but I am not sure if I can. VTSAX has a higher 5-year return than VTSMX (12.47% vs 12.36%). VTSAX vs. VFIAX: Total Stock Market vs. S&P 500. I put very similar amounts into betterment and vtsax at the start of 2018. I'm sure Schwab has made a calculation based on how much it gets for one fund vs. another, how much it has to pay S&P for licensing fees, how much better or worse one fund will sell than another, and tilted its advertising accordingly. You will also be less subject to currency fluctuations, and still get a good chunk of exposure to international markets via companies’ revenues. SWTSX has a lower expense ratio than VTSAX (0.03% vs 0.04%). With this, VTSAX has a 4% turnover while SWTSX has a 1% turnover (from Morningstar) OP, there really is not a difference in the allocation of the holdings between the two, only minor percentage differences. Vanguard Total Stock Market Index : Opening to investors in 1992, VTSAX is among the first index funds to capture the total market. 1 year ago. look at the growth rates and fees. I'd add "Bogleheads Guide to Investing" at equal or greater priority than the dummies version. Press question mark to learn the rest of the keyboard shortcuts. Let's say you invest/re-balance monthly across a 3 fund portfolio. if you're in funds that have long histories of beating the S&P, you can come out ahead even with a higher fee. Most index investors choosing a U.S. stock index fund typically choose one that replicates either the S&P 500 or a total stock market index. Personally, I would move everything to Schwab and do a 50/50 split of SWTSX and SWISX or Fidelity and do a 50/50 split of FZROX and FZILX. Top. For investors looking for dividend income, VFIAX is the better choice because it has a slightly higher SEC yield of 1.86% compared to 1.75% for VTSAX. Posted by 4 days ago. We have the VTI and SPY along w/ Dows-ETFdifferent accounts. Best robo advisors I would say is Fidelity Go > SigFig, with Schwab also a good choice. If you're investing for the long term I don't think 18 months of data tells you anything. This three fund will be less volatile, and thus the upside will be lower. Choosing the best online brokerage is a key step to being a successful investor. Robo's are actually a much better deal for people with lower balances/high diversification because you don't get charged commission fees on trades.*. Mona . Also, OP should look at models of the effects of fees over the long term. With SWTSX the minimum is basically the price of one share. If you’re looking for a quick scoop on VTSAX . They do have differences in the weightings of the individual holdings which will create minor differences in returns. VTI is the same thing as VTSAX but an ETF instead of mutual fund. INVESTORMINT SHALL NOT BE LIABLE FOR ANY DEFAMATORY, OFFENSIVE, OR ILLEGAL CONDUCT OF ANY THIRD PARTY, OR ANY LOSS OR DAMAGE OF ANY KIND INCURRED AS A RESULT OF THE USE OF ANY DATA, INFORMATION, MATERIALS, SUBSTANCE, OR Collective Material POSTED, TRANSMITTED, OR MADE … For new investors (like my 3 kids), you need a minimum of $10,000 to get started which may be a bit high. Below is the comparison between VTSAX and SWTSX. You may also want to check out the following SWTSX comparisons that investors often look for on Finny. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. Both SWTSX and VTSAX are mutual funds. The Fund seeks to track the total return of the S&P 500 Index. Seeking Alpha Premium Dividend Score. Compare and contrast: VTSAX vs SWTSX. I currently have about $50k in a Wealthfront account which has been doing fairly well since I started investing it a few years ago. Re: TSM vs TSM Tax Efficiency: Vanguard VTSAX vs Schwab SWTSX. The Schwab Robo I was in would have me in two similar funds, but one was low cost and the other was high. I'd suggest looking at more of a "three-fund portfolio" approach as described in the PF wiki on investing. VTSAX are simply stocks. Your 3 fund portfolio suggestion, choosing VTSAX, adding a bonds index and an international index, then reviewing and rebalancing at least quarterly will probably be the most hands off approach. Market cap weighted index funds tend to be tax efficient. Yes, this is a taxable account. Similar issues can happen with any other investment accounts you want to have outside of their control. Both VTSAX and SWTSX are mutual funds. This tracks closer to S&P500. Let's say you have two assets of equal risk but do not always move in the same direction -- the two of them together will have lower volatility than either of them separately. VTI and VTSAX are not the same funds. Investing in VTI vs. VTSAX. When I worked on Wall Street, they required us to […] THE PLATFORM IS PROVIDED “AS IS,” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. The one thing that I do like the most about Wealthfront is the tax harvesting. Below is the comparison between SWTSX and VTSAX. The objective of the fund is to seek the investment returns of the Wilshire 5000 Total Market Index, which includes virtually all regularly traded U.S. stocks. 1) For a $10,000 minimum, you can get Vanguard Total Stock Admiral Shares, VTSAX, with an expense ratio of 0.04%. Join our community, read the PF Wiki, and get on top of your finances! Re: Comparing SWTSX vs VFINX « Reply #2 on: May 20, 2015, 09:46:25 AM » Morningstar is the tool you want (I already made the comparison for you at that link, and added VTSAX, which is a more-reasonable total-market fund to compare to than VFINX). VTI: Cost of investment is the price of 1 share. Are VTI and VTSAX the Same? Once you’ve been convinced that index funds are the most efficient way to invest, the only decision you need to make is which index fund to invest in. Go ad free. Vtsax has yielded much better since then, so in my experience the robo advisor fees and tax loss harvesting are not worth it. Vanguard Total Stock Market Index Fund Admiral Shares Inst (VTSAX) Dividend summary: yield, payout, growth, announce date, ex-dividend date, payout date. VTSAX are simply stocks. Nice job picking a low-cost fund. If you get charged a $5 commission per trade that's going to be $15/month just for the re-balance/new investments. Would you recommend moving the money from Wealthfront to all VTSAX or a mix of VTSAX and something else? Comments. VTSAX has a higher expense ratio than SWTSX (0.04% vs 0.03%). I would stick to a 3 fund portfolio or a target date fund if you want good long terms gains with minimal effort. I’ve previously described how to build a Vanguard three-fund portfolio or a Fidelity three-fund portfolio. I’ve been reading a lot about VTSAX and similar investments and I’m starting to wonder if I’m investing my money the right way. This Fidelity vs. Vanguard comparison can help you choose between two of the best online brokers. You can create a diversified portfolio to mimic a Roboadvisor cheaper of which VTSAX would certainly be a part of, but VTSAX is not equivalent by itself. Yes, if you have less than $10,000 to invest, Schwab is friendlier. If you're already a Vanguard client: Call 800-888-3751. johnN. VTSAX: $3,000 minimum initial investment. 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